Metso launches new long-term financial targets to drive shareholder value

Metso Corporation's stock exchange release on November 15, 2011 at 9:00 a.m. local time

  * Sales growth target remains unchanged at over 10 percent annually (CAGR)
  * Earnings per share growth is targeted to exceed sales growth
  * Profitability targets (EBITA-%) set for the business segments
  * Return on capital employed (ROCE) is targeted to exceed 20 percent


Metso's Board of Directors has decided on Metso's new long-term financial
targets in relation to Metso's new strategy.

 "Our target is to create shareholder value through growth and profitability and
we will focus on growth in businesses in which we can achieve a strong global
position. High share of services is important for our value creation and thus we
target high growth in services in all of our businesses," says President and CEO
Matti Kähkönen.

"Profitability will be measured by earnings per share (EPS) on the group level
and by EBITA margins on the segment level. By introducing segment-level
profitability targets we aim to increase transparency of Metso's businesses. We
think that growth in sales and earnings together with high return on capital
employed (ROCE) are the main drivers of our shareholder value going forward. Our
record-high order backlog and strong balance sheet provide us with a solid
backbone to support the growth," Kähkönen continues

The following new financial targets replace the previous targets set in August
2008:



Growth


Our target for sales growth is unchanged and we target annual average sales
growth (CAGR) over 10 percent including acquisitions. We will continue to
emphasize growth in the Services business where the target is to reach more than
10 percent growth annually.


Profitability

Metso will introduce a new group-level profitability target of the annual
earnings per share (EPS) growth exceeding the sales growth.

The EBITA*-% targets will be set on our segments. The following target ranges
are reflecting the different characteristics of our businesses:

+-----------------------+----------------+-----------------+
|Segment                |Minimum EBITA*-%|Targeted EBITA*-%|
|                       |(low demand)    |(high demand)    |
+-----------------------+----------------+-----------------+
|Mining and Construction|      10%       |       15%       |
+-----------------------+----------------+-----------------+
|Automation             |      11%       |       16%       |
+-----------------------+----------------+-----------------+
|Pulp, Paper and Power  |       6%       |       9%        |
+-----------------------+----------------+-----------------+
*before non-recurring items.



Capital efficiency

Return on capital employed (ROCE-%) is one of the key measurements used in Metso
and we target a return higher than 20 percent (excl. impact of major
acquisitions).


Capital structure

Our target is to maintain a solid investment grade rating. This target is
unchanged.

The target for dividend policy remains unchanged as well. Metso's target is to
distribute at least 50 percent of annual earnings per share as a dividend or in
other forms of capital distribution.


Metso is a global supplier of sustainable technology and services for mining,
construction, power generation, automation, recycling and the pulp and paper
industries. We have about 29,000 employees in more than 50 countries.
www.metso.com

Further information, please contact:
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel.
+358 20 484 3253


Metso Corporation

Harri Nikunen
CFO

Juha Rouhiainen
VP, Investor Relations

Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com